- President Trump’s latest tariff Salvo – threatens 10%-70% levy The once shocking market in the non-trading countries and the additional 10% of the BRICS countries. Instead, the S&P 500 S&P 500 is now at a record high (6,279.35), with volatility silent and VIX “Fear” index dormant. Investors now view policy chaos as background noise, analysts say. Uncertainty is just a new certainty.
President Trump said last night that he will start sending letters to various countries that have not signed trade deals with the United States since April, imposing 10%-70% tariffs on them. He also said he would punish any country that is consistent with the BRICS countries (i.e. Brazil, Russia, India and China) and to additional tariffs with additional tariffs. The new deadline for these tariffs will be August 1.
All of this often creates a lot of uncertainty in the market, resulting in huge sell-offs and high volatility. Indeed, we see this happening in April, when Trump first proposed his new tariff levels. The market is down. Today, however, the market will open in New York, with S&P at a new record high. VIX “Fear” index fell asleep.
Why are investors’ tariff chaos on Trump so unpopular?
As wealth Recently pointed out that everyone expects Trump’s policies to harm the United States and the world Economical, but This damage has not yet occurred.
Some analysts are starting to conclude that investors have helped them and regard all this uncertainty as the new normal.
In other words, uncertainty is the new certainty. An example? Bloomberg Trade Policy Uncertainty Index It has dropped Although Trump’s drama is in recent days.
Goldman Sachs has published an interesting note recently titled “Amazing Small Uncertainty Resistance” by Joseph Briggs and Sarah Dong. They believe that while the tariffs are large in the United States, consumers will pay them, but the economies of countries that trade with the United States are relatively small. They say it is too small to destroy global growth.
“Uncertainty in trade policy rose after President Trump’s election, but recently withdrew trade policy based on standard indicators. Our own and the Federal Reserve’s statistical estimates (and economic theory) mean that shortly after the first increase in uncertainty, the obstacle to the growth of uncertainty means that uncertainty should have slowed down global growth, but the signs of uncertainty are all over the event, and investments are available throughout the event, and investments are available throughout the event, and fees are being created throughout the event. In 2025H1,” the note said.
Paul Donovan pointed out at UBS that today’s trade letters will actually Push backward Any negative impact they have further: “Allow some inventory before Christmas, and consumers may not experience surges from these taxes until next January, because Trump is no longer retreating,” he told clients this morning.
Here is a snapshot of the action before the opening clock in New York:
- Before the Open, S&P 500-year futures fell 0.43% this morning.
- The S&P 500 closed up 0.83% on Friday, reaching a new all-time high with a height of 6,279.35.
- Bitcoin is $109K higher.
- Japan’s Nikkei 225 fell 0.56% this morning.
- China’s CSI 300 fell by 0.43%.
- The Stoxx Europe 600 is flat in early trading.
